New research from Intuit QuickBooks demonstrates the impact of poor payment practices on UK small firms, with about 56.4 million hours wasted chasing overdue and late payments every year.
This is more than a working week spent each year chasing money that’s owed for the typical small business.
The study of more than 500 small businesses, found that 30% would use time saved on chasing payments for working on their existing businesses or completing tasks that encourage growth.
These included improving business processes (19%), marketing the businesses (17%) and connecting with new clients and customers (16%).
Chris Evans, VP and UK Country Manager at Intuit QuickBooks, said: “Cash is oxygen for small businesses and without it they cannot breathe. The combination of chasing invoices and bad payment practices means small businesses can run out of accessible cash.
“This has a real impact on their ability to take on new work, pay suppliers, their employees or themselves on time and can add unnecessary extra stress into their lives.”
On average, UK small firms are waiting for nine outstanding invoices to be paid at any one time, and 11% of those typically get paid more that 200-plus days late.